CUSTOMS & EXCISE NOTIFICATIONS REGARDING

DUTY
EXEMTION FOR R&D ACTIVITIES

CUSTOMS & EXCISE
NOTIFICATIONS

NOTIFICATION

New Delhi, dated the 23rd July,
1996

No.15/96 – CENTRAL EXCISES

1 Shravana, 1918 (Saka)

G.S.R. (E) – In exercise of the powers conferred by
sub-section(1) of section 5A of the Central Excises and Salt Act, 1944 (1 of
1944), read with sub-section (3) of section 3 of Additional duties of Excise
(Goods of Special importance) Act, 1957 (58 of 1957), Central Government,
being satisfied that it is necessary in the public interest so to do, hereby
exempts, all goods falling under the Schedule of the Central Excise, Tariff
Act, 1985 (5 of 1986), from the whole of the duty of excise leviable thereon
under the Central Excises (Goods of Special Importance) Act, 1957 (58 to
1957), subject to the following conditions, namely:-

(a)such goods are manufactured by a wholly Indian owned company;

(b)such goods are designed and developed by such Indian company;

(c)the goods so designed and developed are patented by such Indian
company in India and in any other or more of the countries of the European
Union and in United States of America or Japan or in both;

(d)that the manufacturer before the commencement of commercial
production, produces a certificate from an officer not below the rank of the
Additional Secretary to the Government of India in the Department of
Scientific and Industrial Research to the effect that the said goods are
designed and developed by a wholly Indian owned company and patented in any
one of the countries of the EuropeaUnion and in United States of America or
Japan or in both to the jurisdictional Commissioner of Central Excise, and

(e)the procedure as prescribed by the jurisdictional Commissioner of
Central Excise, is followed.

Provided
further that nothing contained in this notification shall apply to such
goods cleared on or after the period of three years from the date of
commencement of the commercial production of said goods.

(TARUN KUMAR GOVIL)

UNDER SECRETARY

TO THE GOVERNMENT OF INDIA

NOTIFICATION

New Delhi, dated the 23rd July,
1996

No.50/96 – CUSTOMS

1 Shravana, 1918 (Saka)

G.S.R. (E) – In exercise of the powers conferred by
sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the
Central Government, being satisfied that it is necessary in the public
interest so to do, hereby exempts equipment, instruments, raw materials,
components, pilot plant and computer software (hereinafter referred to as
the said goods) and falling within the First Schedule to the Customs Tariff
Act, 1975 (51 of 1975), when imported into India, from the whole of the duty
of customs leviable thereon which is specified in the said First Schedule
and from the whole of the additional duty leviable thereon under section 3
of the said Customs Tariff Act, when imported for any Research and
Development Project (hereinafter referred to as the said project) undertaken
by any company, subject to the following conditions, namely:-

(a)the said project is undertaken by any company having an in-house
Research Development unit recognized by the Department of Scientific and
Industrial Research under Ministry of Science and Technology;

(b)the said project is funded by the Government of India in a Ministry
or Department, as the case may be, and the share of such Ministry or
Department is not less than twenty per cent of the total cost of the said
project;

(c)a certificate from a Deputy Secretary to the Government of India in
the Concerned Ministry or Department, as the case may be, funding the said
project is produced to the Assistant Commissioner of Customs in each case,
at the time of importation, indicating:-

(i)the total cost of the project;

(ii) the cost of the project
shared by such Ministry or Department, as the case

may be;

(iii) the value of the goods
already imported under this notification;

(iv) that the goods are imported
for the purposes of the said project;

(d)the goods shall not be sold or transferred to any person or other
organisation for a period of five years from the date of their import:

Provided that the exemption under this
notification shall be available to the said goods only upto a value
equivalent to the cost of the said project shared by the Concerned Ministry
or Department.

(RAJIV TALWAR)

UNDER SECRETARY

TO THE GOVERNMENT OF INDIA

Exemption to
certain goods supplied to specified research institutes.

Notification No. 10/97-C.E., dated 1-3-1997

In exercise of the powers
conferred by sub-section (1) of section 5A of the Central Excise Act, 1994 (1of
1994), the Central Government, being satisfied that it is necessary in the
public interest so to do, hereby exempts goods specified in column (3) of the
Table below and falling under the Schedule of the Central Excise Tariff Act,
1985 15 of 1986), from the whole of the duty of excise leviable
thereon which is specified”-in the said Schedule, when supplied to the
institutions specified in the corresponding entry in column (2) of the said
Table, subject to the conditions specified in the corresponding entry in column
(4) of the said Table.

TABLE

S. No.

(1)

Name of the Institutions

(2)

Description of goods

(3)

Conditions

(4)

1.

Public funded research institution or a university or an Indian
Institute of technology or Indian Institute of Science, Bangalore or a
Regional Engineering College, other than a hospital

(i) If the institution –(a) is a public funded research institution
under the administrative control of the Department of Space or
Department of Atomic Energy or the Defence Research Development
Organization of the Government of India and produces a certificate to
that effect from an officer not below the rank of a Deputy Secretary to
the Government of India in the concerned department to the manufacturer
at the time of clearance of the specified goods; or (b) is registered
with the Government of India in the Department of Scientific and
Industrial Research and the manufacturer produces at the time of
clearance, a certificate from the Head of the institution in each case,
certifying that the said goods are required for research purposes only.

(ii) The aggregate value of prototypes
received by an institution does not exceed fifty thousand rupees.

(i) the institution is registered with the Government of India in the
Department of Scientific and Industrial Research;

(ii) an officer not below the rank of a Deputy Secretary to the
Government of India in the said Department certifies in each case that
the institution is not engaged in any commercial activity and that the
said goods are required for research purposes only;

(iii) the goods are covered by a
Pass-book issued by the said Department;

(iv) the aggregate value of goods
received under this exemption by an institution does not exceed rupees
two crores in the case of consumables, rupees fifty thousand in the case
of prototypes and rupees five crores in other cases, in a financial year

Explanation
– For the purposes of this notification, the expression, -

(a) “Public funded research institution” means a research institution
in the case of which not less than fifty percent of the recurring expenditure is
met by the Central Government or the Government of any State or the
administration of any Union territory;

(b) “university” means a university established or incorporated by or
under a Central, State or Provincial Act and includes -

(i) an
institution declared under section 3 of the University Grants Commission Act,
1956 (3 to 1956) to be a deemed university for the purposes of that Act;

(ii)an institution declared by Parliament by law to be an institution of
national importance

(iii)a college maintained by, or affiliated to, a University;

(c)“Head” means -

(i) in relation
to an institution, the Director thereof (by whatever name called);

(ii) in relation
to a University, the Registrar thereof (by whatever name called);

(iii) in relation
to a college, the Principal thereof (by whatever name called);

Exemption to
goods designed and developed by public funded research institutions, national

Laboratories
and universities and manufactured by an Indian company

Notification No. 13/99-C.E., dated 28-2-1999

In exercise of the powers
conferred by sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of
1944). Read with sub-section (3) of section 3 of the Additional Duties of Excise
(Goods of Social Importance) Act, 1957 (58 to 1957), the Central Government
being satisfied that it is necessary in the public interest so to do, thereby
exempts all goods of the description specified in the Armexure appended to this
notification (hereinafter referred to as the specified goods) from –

(a) the whole of
the duty of excise specified thereon under the First Schedule to the Central
Excise Tariff Act/1985 (5 of 1986);

(b) the whole of
the special duty of excise specified thereon under the Second Schedule to the
said Central Excise Tariff Act;

(c) the whole of
the additional duty of excise specified thereon under the Schedule to the said
Additional Duties of Excise (Goods of Special Importance) Act,

subject to the following conditions, namely :-

(i) the
specified goods are designed and developed by an Indian owned company, national
laboratory, public funded research institution, or university;

(ii) the specific
goods which are so designed and developed are patented by such Indian owned
company, national laboratory, public funded research institution or university,
in any two countries from amongst India, United States of America, Japan and any
one country of the European Union;

(iii) the
specified goods are manufactured by a wholly Indian owned company;

(iv) the
manufacturer produces a certificate from the Department of Scientific and
Industrial Research to the effect that the specified goods are designed and
developed by a wholly Indian owned company, national laboratory, public funded
research institution, or university and are patented in any two countries from
amongst India, United States of America, Japan and any one country of the
European Union;

(v) the procedure
as prescribed by the jurisdictional Commissioner of Central Excise is followed;

(vi) the exemption
contained in this notification shall not apply to the goods which are cleared on
or after a period of three years from the date of issue of the certificate by
the Department of Scientific and Industrial Research referred to in condition
(d) above.

Explanation.-For
the purposes of this notification,-

(a) “national
laboratory” means a scientific laboratory functioning at the national level
under the aegis of the Indian Council of Agricultural Research, the Indian
Council of Medical Research, the Council of Scientific and Industrial Research,
the Defence Research and Development Organisation, the Department of
Electronics, the Department of Bio Technology or the department of Atomic
Energy;

(b) “public
funded research institution” means a research institution in the case of which
not less than fifty percent of the recurring expenditure is met by the central
Government or the Government of any State or the Administration of any Union
Territory;

(c) “university”
means a university established or incorporated by or under a Central/State or
Provincial Act and includes

(i) an
institution declared under section 3 of the University Grants Commission Act,
1956 (3 of 1956) to be a deemed university for the purposes of that Act;

(ii) an
institution declared by Parliament by law to be an institution of national
importance.

(iii) a college
maintained by, or affiliated to, a university.

ANNEXURE

All goods specified in the First Schedule to the Central Excise
Tariff Act, 1985 (5 of 1986) other than following, namely:-

(i)tobacco and tobacco preparations;

(ii)pan masala;

(iii)arms and ammunition;.

(iv)Narcotic drugs and psychotropic substances, as defined in clause (xiv)
and clause (xxiii) respectively of section 2 of the Narcotic Drugs and
Psychotropic Substances Act, 1985 (61 of 1985) other than those used for
pharmaceutical purposes.